Marubeni Corporation has signed a contract with state-run Myanma Railway (MR) for installation of an operation control centre system and safety equipment, marking the Japanese trading firm’s entry into the country’s transportation sector.

The company said it will supply the railway safety equipment by the end of July 2016 and the equipment will be installed at Yangon Central Station and Pazundaung Station.

Marubeni will supply railway safety equipment manufactured by Kyosan Electric Mfg, it said in a statement.

The project is being covered by grant aid from the Japan International Cooperation Agency (JICA).

Marubeni has been involved in a number of projects in Myanmar including a $3-billion coal power plant in Tanintharyi region, a 400-megawatt gas power plant in Thanlyin, corrugated container production, a fertiliser plant and the multi-million dollar Thilawa special economic zone since the country opened up in 2011.

The government has been trying to modernise the existing railway facilities to improve safety and operation service in the last couple of years.

Several railway modernisation projects such as the Yangon-Mandalay Trunk Line and the Yangon Circular Line have been planned with Japanese government assistance.

Marubeni took part in similar rail systems project in Venezuela, the Philippines, United Arab Emirates and Thailand. The company said it aims to expand its railway related business further in overseas markets.